Berendsen disappoints with results despite new CEO appointment

LONDON (ShareCast) - First (Other OTC: FSTC - news) quarter sales at laundry services group Berendsen (LSE: BRSN.L - news) fell 5%, in line with expectations, due to strong currency headwinds and troubles in the UK with a hotel linen contract. The FTSE 250 group said the revenue decline was due to the strong pound, although it added that revenue increased 3% at constant exchange rates.

Berendsen said its UK flat linen division suffered from contract issue from the group's hotel division.

However, the company said its facility division reported steady underlying development, while its workwear arm made progress despite challenging market conditions.

Pre (Shanghai: 600048.SS - news) -tax profit for the period declined as a result of currency translation, the group said in a statement on Thursday, without giving precise details.

Meanwhile, James Drummond was announced as the new chief executive to replace outgoing CEO Peter Ventress, who will retire from his role at the end of July to become chairman of housebuilder Galliford Try (LSE: GFRD.L - news) .

Berendsen shares were down 4.96% to 1,035.00p at 09:16 on Thursday.